Breville Group Limited · ASX:BRG
Breville — FY2004 Earnings Presentation
22 slides from Breville's earnings presentation, June 2004
Slide 1: Group Report for the Year Ended 30 June 2004
1 GROUP REPORT FOR THE YEAR ENDED 30 JUNE 2004
Slide 2: Financial Results Summary
FINANCIAL RESULTS SUMMARY 2 A$ MILLIONS JUNE 04 JUNE 03 CHANGE SALES 457.6 456.0 +0.4% EBITA* 42.2 37.2 +13.4% AMORTISATION 1.7 1.5 NET BORROWING COSTS 5.0 4.9 NPBT* 35.5 30.8 +15.0% SPECIFIC ITEMS 1.5 0.0 NPBT 34.0 30.8 +10.3% TAX 11.1 9.9 NPAT 22.9 20.9 +9.1% PRO-FORMA NPAT* 23.9 20.9 +14.4% * Nor
Slide 3: Balance Sheet at 30 June 2004
BALANCE SHEET AT 30 JUNE 2004 3 A$ MILLIONS JUNE 04 JUNE 03 DEBTORS / PREPAYMENTS 74.0 65.4 INVENTORY 93.6 82.9 CREDITORS / PROVISIONS (46.9) (48.5) WORKING CAPITAL 120.7 99.8 INTANGIBLES 78.2 67.2 FIXED ASSETS / OTHERS 23.1 18.8 CAPITAL EMPLOYED 222.0 185.8 SHAREHOLDER FUNDS 158.7 142.0 NET DEBT 63
Slide 4: Business Model
chwi) BUSINESS MODEL
Slide 5: Business Model
BUSINESS MODEL 5 Homewares Breville Marketing Marketing Design Design Design Excellence (Sydney, Australia) Innovation & Lifestyle Brand & Product R&D/Design Funding Development Design Funding Hong Kong & China Procurement Base QC & Shipping Competitive Procurement Export Sales Other New Australia U
Slide 6: Business Performance Summary for the Year Ended 30 June 2004
6 BUSINESS PERFORMANCE SUMMARY FOR THE YEAR ENDED 30 JUNE 2004
Slide 7: Homewares Australia
HOMEWARES AUSTRALIA 7 Trading conditions were characterised by deflationary pressures and direct import programs, particularly at price entry points, which contributed towards an extremely competitive environment. Marketing driven restructure successfully completed and is expected to positively
Slide 8: Homewares Australia
HOMEWARES AUSTRALIA 8 The Group’s China procurement and sales facility was opened in Shanghai in May 2004. This office will be used as support for the company’s product development initiatives and administer the group’s direct import program. In August, the Rydalmere facility was closed as an ac
Slide 9: Electrical
ELECTRICAL 9 Excellent profit result with strong contributions from exports and New Zealand. Tight working capital controls maintained in a competitive environment. Breville’s Design Centre is now poised to bring to market genuine innovative product which will be distinctive in both design and
Slide 10: Electrical
ELECTRICAL 10 Product development expenditure is significantly up in previous years, with the release of the Breville “800 Class TM” Professional Grade range of countertop appliances. Breville’s brand acceptance in North America will be directly linked to the success of the “800 Class TM” produc
Slide 11: North America
NORTH AMERICA 11 A strong profit performance in US$ currency. Driven by the Breville launch and focused cost and supply chain management. The North American Breville project is taking traction with sales in the USA of US$5m and a positive profit contribution after covering its share of operating
Slide 12: North America
NORTH AMERICA 12 The Company successfully completed its second Chicago Fair and the Electrical product offering in the USA is being expanded to take advantage of the positive momentum around this project. The sales and marketing resources for the Homewares business have been boosted through the
Slide 13: North America Update
cawi) NORTH AMERICA UPDATE
Slide 14: Breville in North America
14 BREVILLE IN NORTH AMERICA OBJECTIVES • To develop Breville as a nationally recognised consumer brand, synonymous with innovation and design. • To become one of the top 3 brands in North American Gourmet Specialty stores by 2008. STRATEGY • Limited distribution • Unique product assortment (nothing
Slide 15: U.S. Market Overview
15 U.S. MARKET OVERVIEW • Market size - $US 4.4 Billion (excludes P.C) • Growth – Flat to 2% per yr, last 4 years • Our Niche – 19% of value ($836 million) • Our Potential – 15% share - $125 million • Breville 2003/04 sales - $5.475 million • Breville Target – US$50M by 2008
Slide 16: Year 1. The USA Story So Far
YEAR 1. THE USA STORY SO FAR … 16 BRAND PRESENCE • BLOOMINGDALES - IN ALL STORES - 6 PRODUCTS • MAY COMPANY - IN ALL STORES - 4 PRODUCTS • AMAZON.COM - FULL BRAND PAGE - 14 PRODUCTS • LINENS N THINGS - ALL STORES (1 AUG) - 2 PRODUCTS • DILLARDS - ALL STORES (1 SEP) - 5 PRODUCTS CONSUMER AWARENESS BY
Slide 17: Year 1. The USA Story So Far
17 YEAR 1. THE USA STORY SO FAR … Advertising and PR • US$525m Spend
Slide 18: Year 1. The USA Story So Far
18 YEAR 1. THE USA STORY SO FAR … FINANCIAL HIGHLIGHTS • US$5.5m sales 2004/05 fiscal year. • Profitable in 2004/05 with its share of operating, marketing and start-up expenses written-off.
Slide 19: Canadian Market Overview
19 CANADIAN MARKET OVERVIEW • Market size - C$ 305million • Our Niche – C$ 175 million (57.5%) • Our Potential – 15% share - C$27 million • Breville 2003/04 sales - C$2.8 million • Breville Target – C$20m BY 2008
Slide 20: Year 1. The Canadian Story So Far
20 YEAR 1. THE CANADIAN STORY SO FAR … BRAND PRESENCE • Home outfitters (40 stores) – 9 products by Sept 04 • Sears (100 stores) – 2 products by August 04 • Personal Edge (65 stores) – 5 products • Canadian Tire (480 stores) – 5 products by Sept 04 • TV shopping channels (English & French) – 2 produ
Slide 21: Year 1. The Canadian Story So Far
21 YEAR 1. THE CANADIAN STORY SO FAR … ADVERTISING AND PR • Proposed spend for 2004/2005 in C$400,000. FINANCIAL ACHIEVEMENTS • Sales of C$2.8m • Break-even result with its share of operating, marketing and start-up costs written-off.
Slide 22: Questions
22 HOUSEWARES INTERNATIONAL QUESTIONS